Ramani crosses $210m in SMB loans with new TCB DEAL, following Stanbic Bank

Ramani, a Y Combinator-backed fintech, has recently announced a partnership with Tanzania Commercial Bank (TCB) to expand its small and medium-sized business (SMB) financing platform. This move follows a similar collaboration with Stanbic Bank, showcasing the company's commitment to improving access to credit in crucial sectors like Fast-Moving Consumer Goods (FMCG), Liquified Petroleum Gas (LPG), and cement. Having facilitated over $210 million in loans to date, Ramani is establishing itself as a leading player in the digitalization of supply chain financing in Tanzania. The CEO of Ramani, Iain Usiri, sat down for an interview with CNBC Africa's Tabitha Muthoni to elaborate on the company's innovative approach and future prospects. With a strong focus on technology and real-time monitoring, Ramani has been able to achieve an impressive 1% default rate over the past 12 months. This rate is significantly lower than the industry standard of 5% for secured loans in Tanzania, highlighting the efficacy of their risk management strategies. Usiri attributes this success to the advanced technology that enables them to underwrite and monitor SMB customers more efficiently than traditional lenders. By closely tracking the performance of loans throughout their lifecycle, Ramani can proactively manage risks and collaborate closely with clients to ensure repayment. One of the key factors setting Ramani apart from other African fintechs is its scalable technology stack, which was designed to support national operations from the outset. Usiri explains that their platform offers inventory financing to distributors of renowned brands like Coca-Cola, streamlining the loan process and digitizing the operations of these businesses. By leveraging real-time data on sales, stock levels, and market trends, Ramani can tailor credit offerings to meet the unique needs of each client. The CEO emphasizes that their technology-driven approach not only enhances risk management but also improves customer retention and overall service quality. The collaboration with TCB and Stanbic Bank is not merely about brand visibility but also about access to cutting-edge technology that empowers banks with real-time monitoring capabilities. Traditional lenders typically lack the tools to track loan performance daily, leaving them reactive in case of defaults. In contrast, Ramani's platform enables continuous monitoring and early identification of risks, enabling swift interventions to prevent defaults. Banks partnering with Ramani gain access to high-yield SMB credit products coupled with advanced risk management tools, offering a competitive edge in a saturated market. As the banking sector in Africa evolves, institutions are increasingly turning to innovative solutions like SMB lending to drive revenue growth. Ramani's differentiated technology infrastructure and track record of success make it an attractive partner for banks seeking to expand into this segment. Regulators in Tanzania, particularly the central bank, have been supportive of Ramani's innovative approach, providing the necessary licenses and backing for their operations. The company's vision to transform African supply chains through digitization has earned them recognition for their role in revolutionizing credit access for informal and semi-formal businesses. By capturing and analyzing real-time data on customer operations, Ramani can offer flexible and tailored credit solutions that adapt to market dynamics and seasonal fluctuations. This tech-enabled approach not only revolutionizes SMB lending but also sets a new standard for risk scoring in the financial industry.